Assume the following bid and ask rates of the pound for two banks as shown below:

	Bid	Ask
Bank C	$1.61	$1.63
Bank D	$1.58	$1.60

As locational arbitrage occurs:

	a.	the bid rate for pounds at Bank C will increase; the ask rate for pounds at Bank D will increase.
	b.	the bid rate for pounds at Bank C will increase; the ask rate for pounds at Bank D will decrease.
	c.	the bid rate for pounds at Bank C will decrease; the ask rate for pounds at Bank D will decrease.
	d.	the bid rate for pounds at Bank C will decrease; the ask rate for pounds at Bank D will increase.